If you have overdue New Zealand student loan arrears, you are an overseas based debtor, and you do not want to become bankrupt, the main options are:
If you have questions please let us know.
- Offering to pay the overdue arrears off with one lump sum. In some cases the amount to pay can be reduced.
- Offering to pay the overdue arrears over time. Weekly or monthly payments would be usual.
- Applying for hardship.
- A hybrid combination of the above. For example, if you cannot afford to offer to pay all of the overdue arrears in one go, but you can afford a smaller lump sum amount and some kind of ongoing regular payment. Or, for example, you can afford to offer a smaller lump sum or smaller ongoing amounts but nothing more, then this could be combined with a partial hardship application.
- If you have resolved your arrears with the IRD, and keep up with ongoing payments, you will be safe from the risk of IRD action in respect of your NZ student loan debt. You should keep written confirmation of the resolution.
- If you resolve your arrears you will probably still have debt to pay the IRD (unless your arrears are almost the same as the full debt which happens in some cases).
- Minimum semi-annual payments, for overseas based debtors, are usually based on the highest level that your debt reached. These payments (at least) will need to be made until the debt is repaid in full unless you become bankrupt or have a hardship type exemption.
- The arrears amount (or full debt amount) should always be checked, in writing, with the IRD before payment is made as the amount can vary from the amount stated in MyIR or on routine statements.
If you have questions please let us know.